As a franchisor, building strong and productive franchisee relationships should be one of your primary goals. Good relationships with franchisees are imperative for the long-term success of your business.
Adjusting to the franchisor-franchisee relationship can be a challenge, particularly for anyone used to a traditional employer-employee work situation. However, with the right approach, you can forge solid, mutually beneficial relationships that maximize your common goals and minimize conflict.
Be Thorough with Franchisee Research
New franchisors may be excited by inquiries from potential franchisees, but every candidate may not be a good fit for a franchise system.
Before considering a business relationship with a prospective franchisee, a franchisor should always do their due diligence. Thoroughly scrutinizing the candidate’s personal and financial background provides a clear picture of their potential for success. Franchisees may have different motivations, and a franchisor needs qualified people with common goals for the best chance at building strong, long-lasting business relationships.
Commit to Open Franchisor/Franchisee Communication
Sound franchisor-franchisee relationships are built on mutual respect and trust. As a franchisor, committing to open, bi-directional communication is cr tical for continued franchise system success.
A franchisor needs to regularly share information with their franchisees to keep everyone up-to-date on operations, new marketing strategies, developmental concerns and changes to the franchise system. In addition, franchisees should have a method of providing feedback and sharing their ideas.
Give Your Franchisees the Proper Tools
Open communication can only go so far. A franchisor must give franchisees the proper tools and systems to succeed. Otherwise, the franchisor-franchisee relationship is sure to sour.
An initial training program, along with support materials, is essential. Giving franchisees guidance on staff recruitment, access to marketing materials, ongoing instruction in the field or at the franchise system headquarters can help ensure a long-lasting, profitable relationship.
Make Decisions with Your Franchisees
Franchisee relationships have a much greater chance of lasting when both parties work together.
Every franchisor has an obligation to stay informed and adapt to changing market conditions. What’s always worked in the past may not be the best approach for the future of a franchise system. Changes in trends, tastes and technology may require periodic adjustments. And while the franchisor is always the one to make final decisions, franchisees should have input on matters of concern. Coming to a consensus can help build trust and confidence, leading to a more solid business relationship.
The stronger your franchisor-franchisee relationships are, the more successful your franchise system can become. Having an experienced attorney on your side is imperative in today’s highly competitive business world.
Based in northern Utah, the attorneys of the Franchise & Business Law Group have extensive expertise in a full range of franchising and business matters. Our attorneys offer expert guidance for developing sound franchisee relationships. For help with your future as a successful franchisor, contact our Salt Lake City office today to schedule a complimentary consultation.